STATEMENT RE LUMIRADX

BioPharma Credit PLC

29 July 2024

 

29 July 2024

BIOPHARMA CREDIT PLC

(THE "COMPANY")

STATEMENT RE LUMIRADX

Pharmakon Advisors, LP, the investment manager of the Company ("Pharmakon"), notes the announcement released on 29 July 2024 by Roche Diagnostics Limited ("Roche") regarding the completion of its acquisition of certain LumiraDx group companies (the "Point of Care Diagnostics Companies") following the receipt of all required regulatory clearances (the "Transaction"). The entering into of the sale and purchase agreement (the "Purchase Agreement") between Roche and Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting LLP as the joint administrators of LumiraDx Group Limited and LumiraDx International Limited (the "Administrators") was previously announced by the Company on 29 December 2023.

In connection with the closing of the Transaction, the amount due to the Administrators is USD$351.1 million, which is comprised of (i) USD$288.4 million pursuant to the Purchase Agreement and (ii) USD$62.7 million in reimbursement in connection with the administration funding facility provided by BioPharma Credit Investments V (Master) LP and BPCR Limited Partnership (the "Senior Secured Lenders") to support the ongoing ordinary course operations of the Point of Care Diagnostics Companies in the period to complete the Transaction (the "Administration Funding Agreement"). The USD$351.1 million amount reflects working capital adjustments and includes a USD$15.0 million holdback from the Purchase Price, which is expected to be released in accordance with the Purchase Agreement within the next 90 days (the "Holdback Amount").

The Company expects to receive 50% of the amounts due to the Administrators in connection with the closing of the Transaction, less certain expenses, most of which will be returned to the Senior Secured Lenders within the next 10 days and the balance within the next 90 days. Assuming Roche releases 100% of the Holdback Amount, and estimated total expenses of USD$10.0 million, the Company is expected to receive approximately USD$170.6 million, which is USD$3.0 million more than the June 2024 valuation of USD$167.6 million. When added to the USD$27.5 million received in the form of interest during the life of the loan, the Company is expected to recover approximately 96 per cent. of its USD$206 million investment.

Pharmakon notes that the Transaction did not involve the sale of LumiraDx's approximately 81% interest in Lumira SAS (Colombia), a Colombian distributor of third party diagnostic products with USD$13.7 million sales in 2023 and USD$2.9 million in EBITDA in 2023, whose ownership is expected to be transferred to the Senior Secured Lenders in due course. Any proceeds received from a potential sale of this interest would be in addition to the recovery amounts described in the previous paragraph.

Pharmakon Advisors, LP is continuing to actively monitor the timing of the expected release of the proceeds from the Administrators and will provide any updates in due course.

Enquiries

Buchanan

David Rydell / Mark Court / Jamie Hooper / Henry Wilson

[phone]

[e-mail]

Notes to Editors

BioPharma Credit PLC is London's only specialist debt investor to the life sciences industry and joined the LSE in March 2017. BioPharma Credit PLC seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. BioPharma Credit PLC seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.

 

END